Top ways to cut your expenses and increase your savings
Chasing better control of your money - especially as mortgages, bills and the cost of living keep nudging upwards? Whether you’re paying off a home loan, eyeing a refinance, or simply want to stash a bit more in savings, these ideas are tailored for you.
Start with a rock-solid budget
It sounds obvious, but you’d be surprised how often it gets skipped. According to MoneySmart (the Australian Government’s financial advice site), the first step is to record all your income, then list all your expenses: the fixed ones (mortgage/rent, utilities), variable ones (groceries, transport) and the unexpected ones (car repairs, medical bills). Once you know what you’re earning vs. what you’re spending, you can set a clear spending limit and a savings goal.
Tip: Set up a dedicated “savings” account and automate a transfer right after payday - out of sight, out of mind.
Tackle the big chunks first (not just fancy coffees)
When you’re trying to free up cash, it pays to attack the larger recurring costs rather than just the small “treat” purchases.
Groceries & food: In NSW the government’s cost-of-living hub points out that food is a major household expense and says you can make big savings by comparing unit prices, visiting more than one store and buying imperfect produce.
Utilities, insurance, loans: Switching providers or reviewing your cover could save hundreds or even thousands per year. For instance, one report notes turning off appliances at the power point, changing health or car insurers, or energy providers could yield significant savings.
Subscriptions and “spare” services: It’s easy to forget them, but they add up. Using a zero-based budget (where every dollar is assigned) helps you spot these.
If you’re paying a home loan, those repayments are a huge chunk of your budget. While you may not want to refinance too hastily, reviewing whether your loan structure, interest rate or offset account setup is optimised could free up dollars elsewhere.
“Automate the boring stuff”, so saving happens without effort
One of the most successful habits: make saving automatic. You don’t need to rely solely on willpower. Use tech and design your system.
Set up a regular transfer from your pay account into a high-interest savings account. MoneySmart recommends this.
Use “round-up” features: one Australian fintech suggests rounding purchases up to the next dollar (or $2/$5) and putting the spare change into savings.
Review and consolidate debt: if you have high-interest credit cards or personal loans, consolidating them (or switching to better rates) frees up money you can redirect into saving.
Make smart tweaks to everyday behaviour
Tiny changes consistently made = meaningful savings over a year. Here are some practical suggestions:
Plan meals in advance and freeze leftovers. As one CommBank story in Sydney showed, planning meals saved about A$70 per week for one household.
Visit multiple supermarkets (especially if you have time) and check unit pricing. NSW Government suggests this can save up to ~40% for produce in some cases.
Switch off appliances at the wall and reduce standby power. It might seem small, but the savings add up.
Trim subscriptions (streaming, gym, etc) you aren’t using enough.
Keep an eye on your large liabilities (including the home loan)
Since mortgages are front and centre for many NSW residents, it’s worth giving this some extra attention:
If interest rates change or your loan term is long and expensive, speak to your broker about evaluating your options (refinancing, partial pre-payment, offset account).
Use an offset account effectively: for example, you might park any extra cash there to reduce the interest-bearing balance of your mortgage (thus saving interest) rather than just letting the money sit in a low-interest account.
Don’t neglect other major loans or commitments (car loans, buy now, pay later, credit cards). Paying these down sooner gives you more flexibility in your monthly budget.
Set clear savings goals and celebrate milestones
Saving is easier when you know why. Whether you’re aiming to reduce your loan term, build an emergency fund, or start an investment pot – clarity matters.
Use realistic targets: e.g., “I will set aside 5% of my income each month into savings” is recommended for 2025 budgeting.
Regularly review your progress: If you automate saving and review quarterly your budget and savings, you’re more likely to stay on track.
Celebrate small wins: Did you reduce your grocery bill by $50 this month? Great — that’s extra you can funnel into savings or your mortgage offset.
Keep your mindset aligned: spend smarter, not just less
Cutting costs doesn’t have to feel like deprivation. It’s about making smarter choices with your money so that you redirect funds toward what matters.
Choose value over price: For example, spending a little more on an appliance that lasts longer might save you money in the long run (less frequent replacements). One tip: buy quality over cheap if the cheap model needs replacing.
Distinguish between “needs” and “wants”: The 50/30/20 rule is a well-known budgeting method (50% necessities, 30% wants, 20% savings) and can help frame your decisions.
Use momentum: Small savings early (even $20/week) build a habit, which pays off when larger opportunities (like refinancing) arise.
Work with your mortgage broker (that’s us!) to tie it all together
Finally, if you’re dealing with a mortgage (which many NSW residents are) then the synergy between savings, expenses and borrowing becomes crucial.
By lowering your expenses and increasing savings, you improve your borrowing position, which may open up better loan terms or allow you to pay down your home loan sooner.
Talk to your broker about how your savings strategy might support your mortgage goals, e.g., using extra savings to make additional repayments, optimising your accounts, or refinancing when market conditions are favourable.
Make savings and expense management part of your overall financial plan, not just a separate ‘side project’.
In closing
The cost-of-living pressures in Australia are real: rising grocery bills, bigger utility costs and higher borrowing rates all squeeze households. But the good news is: you can act. By budgeting smartly, automating your savings, attacking the big costs, and aligning your mortgage strategy accordingly, you’ll give yourself breathing space — and perhaps even a few more dollars for the good things in life.
Stay savvy, keep the kettle on (and maybe make dinner at home instead of going out 😉 ), and remember: every dollar saved moves you closer to financial freedom.
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